Investors flock to Novomatic's €500m corporate bond

Investors flock to Novomatic's €500m corporate bond

Tuesday, September 20, 2016 Posted by Andy McCarron
Novomatic is building a war chest to help it pursue its objectives

Global gaming group Novomatic is building up a 500m euro war chest for potential new acquisitions and financial 'optimisation' with the launch of a new corporate bond.

Investors have flocked to express their interest in the bond following a roadshow for institution investors in London, Frankfurt, Amsterdam and Vienna. The seven-year bond will be fixed at 1.625% p.a.

There is real appetite for this bond, which has been divided into units of 500 euros, as institution investors have filled in the order book six times over.

The gaming technology group intends to use the revenue from the sale of partial debentures mainly for the ‘optimisation of the financing structure’, for example through the repayment of financial liabilities, but also for possible acquisitions (including the acquisition of Ainsworth Game Technology Ltd.), for future investments in current activities as well as fixed and financial assets, and for ‘general business purposes’.

This first benchmark bond by Novomatic is the first from an Austrian company in 2016. It is being issued from the recently approved EUR 2,000,000,000 issuance program by Novomatic AG, which has been provided with the investment grade rating BBB (stable outlook expected) by the international rating agency Standard & Poor’s.

German and Austrian investors are amongst the largest investor groups with 40% of the subscribed volume, followed by Great Britain with 16% and France and the Benelux countries with 11% respectively. The remainder is distributed between Italy, Scandinavia, Switzerland, Spain and Portugal.

Novomatic AG is a regular issuer on the capital market and most recently successfully placed corporate bonds in June 2014. Approval has been granted for the bond for trade in the regulated market of the Viennese stock exchange. Joint Lead Managers for this issue are Erste Group Bank AG, Raiffeisen Bank International AG and UniCredit Bank Austria AG.

Totally Gaming Says: This bond is a safe a bet on the gambling industry as you are likely to ever get, albeit with a perhaps not the payout you would usually get from such a big win. However with a six fold oversubscription, Novomatic will have a nice bit of working capital in which to move forward smoothly.


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